Multiple Choice
If your after-tax realized real interest rate was 1 percent over the past year and the inflation rate was 3 percent, what was the nominal interest rate on your one-year bond if your tax rate was 15 percent?
A) 4.45 percent
B) 4.7 percent
C) 5.0 percent
D) 5.25 percent
Correct Answer:
Verified
Correct Answer:
Verified
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